-USA turud avanevad reedesest tasemest tunduvalt allpool. Euroopa ja Aasia turud on üle 2% miinuses ning peamine põhjus nafta hinna jätkuv tõus ning Iraagi rahutuste kasv.
-Nafta hind on kerkinud juba 41,7 dollari juurde barreli eest ning Iraagist tulev negatiivsete uudiste voog ei luba olulist paranemist lähiajal ette näha. Euro tugevnes dollari vatsu üle protsendi ning on taas üle 1,2 eur/usd taseme.
-Norteli (NT) aktsia on taas löögi alla, Kanada telekomivarustuse juhid said nädal enne kvartalitulemuste ülevaatamise teadet hea töö eest lisaboonust. Aktsia on eelturul pea 5% miinuses.
-Nii terrorismiohu kui nafta hinna tõusule on tundlik lennundussektor, British Airways (BAB) aktsia on Euroopas 4% miinuses.
-Oracle (ORCL ) alandas oma rivaali PeopleSoft (PSFT) ülevõtmispakkumist 7,7 miljardile dollarile. Oracle eelturul -1,8%, Peoplesoft -2,8%.
Rev Shark:
The market is suffering from the slings and arrows of the external world this morning. The head of the Iraqi Governing Counsel was killed in a suicide attack, which raises concerns about the planned hand over of control on June 30.
The market in India is suffering what some may consider a crash. The primary Indian stock index was down as much as 17% as recent political changes, which many consider to be unfriendly to business interests, shake up the market mood.
Oil prices continue to soar, the dollar is down against the euro and yen, and bonds continue to fall as rates rise. Overall it is one very painful market for the bulls and they are suffering the consequences of their optimism.
The weakness this morning is particularly interesting given the pervasive view recently that sentiment had gotten so negative and the market so oversold that a bounce was inevitable. So many traders seemed to be anticipating a reflex bounce that you had to wonder if the real contrary position was to expect the market to continue lower.
The big problem for this market is that we have so few positive catalysts right now. Earnings season is over, strong economic news only causes worries about interest rate hikes, and geopolitical events seem to be going from bad to worse.
This gloomy picture is confirmed by the weak technical action of the major indices. The Nasdaq has been struggling mightily to hold on to the 1900 level, which is destined to fall on the open. This will be the third time in the last few days it has been breached but we have yet to close under that level. However, each time we crack that plateau it increases the likelihood of another leg down.
The S&P 500, DJIA and Russell 2000 aren't in much better shape. The S&P 500 is still above its 200-day moving average and has some support at 1075, but the other indices are in even more dire circumstances.
I've been steadfast in my comments lately that it is a mistake to be overly anticipatory about a turn in this market. The action this morning confirms how dangerous it is to try to time the bottom in this market. In my opinion the proper approach is to be on the sidelines and to wait for the technical picture to improve. Sooner or later we will turn back up and have a sustained rally. When that happens there will be plenty of time to put your cash to work.
Many folks fear they will miss the first few days of a rally so they end up buying early, and they incur some big losses that will take many days to make up, even when the market does turn.
So you can either dig a hole while trying to nail the exact turning point in the market or you stand aside with lots of cash, wait for a better market and then become more aggressive. Hopefully I've made it clear which approach I prefer, and why.
We have a very weak open and the market is feeling a bit panicky this morning. I would not be surprised to see a bounce after this big swoosh down this morning but if you play it, make sure you keep your time frame very short. It is going to take a lot of work for this market to produce a better technical picture.
Be careful out there. Emotions are running very high and things are likely to be very volatile.
Gary B. Smith: